• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Declaring income during unemployment - how to freelance without losing unemployment check.

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

B_Billingham123

New member
I'm getting laid off tomorrow (in California), and plan on going on unemployment,. I will probably support myself with small freelance jobs until I find another full time job.

The problem is - unemployment asks you how much money did you make that week, and they remove it from your unemployment check that week. For example, if I make $350 in a freelance gig, and I report that to unemployment, they would remove $350 from you unemployment check.

Is there any way I can set up my freelancing contracts so that I don't get dinged from unemployment?
 


Just Blue

Senior Member
I'm getting laid off tomorrow (in California), and plan on going on unemployment,. I will probably support myself with small freelance jobs until I find another full time job.

The problem is - unemployment asks you how much money did you make that week, and they remove it from your unemployment check that week. For example, if I make $350 in a freelance gig, and I report that to unemployment, they would remove $350 from you unemployment check.

Is there any way I can set up my freelancing contracts so that I don't get dinged from unemployment?
Are you asking us if there is a way to hide the income from unemployment? :confused:
 

B_Billingham123

New member
No, I'm asking if there's a legal way to structure my freelance contracts so that the contract completes in a few months. Maybe I create a contract that says the freelance job only officially concludes in September 1, 2020, presumably after I get get another job so I can keep the money. And that's when I'll deposit the check.
 

cbg

I'm a Northern Girl
No. There is no way to structure your freelance contracts so that you are able to avoid the offset to your unemployment benefits.

I hope that is now clear to you.,
 

commentator

Senior Member
So you're saying that you'll do the actual work now, while you are drawing benefits, but not be paid for it until September. For unemployment purposes, that is a way to do it, but it won't do anything much for you, in my opinion. In truth, it wouldn't be any different than committing fraud. Because the words of the weekly certifications for benefits are something like, 'Did you do any work this week for which you were paid, or will be paid at some future date." No way to duck it, that's what they're talking about. Pick up work, not for covered employers is generally okay, but if you've got a lot of work going on, it very well may come up.

I'd suggest you keep it honest, instead of trying to fancy it up. Okay, there's not so much point in doing a job for which you won't be paid till Christmas in order to "support myself." The idea of unemployment insurance is that you are supposed to be supporting yourself and living on it. But If you have the necessity of doing freelance jobs, then report them honestly at the time you put in the hours, as in 8-10 hours a calendar week (which is how unemployment calculates work week, regardless of when you'll be paid.)

Reporting the money won't reduce your benefits really, it just deducts a certain amount (not, incidentally, penny for penny as you said) from your WBA because of the work you have done that week. If you never make more than your Weekly Basic Amount in gross wages, not net, it will not stop your claim. If you do go over the amount, it will stop your claim and you will have to reopen the claim to file for the next week. And that money that is deducted is not lost, it's just added back onto your total amount of unemployment you can draw eventually. I saw lots of people who did freelance things like work as an adjunct instructor, paid one time a year. They reported their amount at the time the work was done, 2-3 hours a week, which did not reduce their weekly basic amount much at all, yet did honestly cover the earnings that later showed up when the system cross matched their benefits with their reported income on their income taxes.
 

Chyvan

Member
Is there any way I can set up my freelancing contracts so that I don't get dinged from unemployment?
Don't do the gig work. It's TOO much work to deal with UI issues that can arise for what you get. Just collect the UI. If you have that much free time, clean your oven, repair your car, or paint your house. You don't have to report any income from doing work that you'd have to pay someone else to do. I find it hard to believe that you don't have a ton of backed up projects that you've always told yourself, "if I only had more free time I'd . . . ."

That gig work is usually a total ripoff. I'd feel differently if it was a lucrative contract, but with you throwing around "gig" and "$350," this sounds like crap work.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top